On Chinese New Year: Loren Calls for Entrepreneur EmpowermentFebruary 14, 2010
SENATOR LOREN LEGARDA CALLED FOR THE EMPOWERMENT OF ENTREPRENEURS BY PROVIDING MORE ASSISTANCE TO MICRO, SMALL AND MEDIUM-SCALE ENTERPRISES (MSMES).
Loren, author of the Barangay Kabuhayan Act (R.A. 9509) and the Magna Carta for Micro, Small and Medium Enterprises (MSME) Act (R.A. 9501), called for the implementation of these laws to stimulate the so-called informal sector in the face of the alarming nosedive of the country’s exports.
“By their sheer number and inescapable presence alone, addressing MSMEs concerns will certainly accelerate the growth and development of our nation’s economy and lead to a better life for our people,” said Loren.
She said that stimulating the micro, small and medium enterprises which employs 69 percent of the country’s labor force is an ideal response to the country’s dwindling exports in the face of continuing global economic woes.
Under the amended law, the micro, small and medium enterprises (MSMEs) definition was modified in order to include more MSMEs, especially those that really belong in the micro sector.
Now, enterprises with capitalization of P3 million or below are classified as micro enterprises as compared to the previous cap of P1.5 million. With the increase of the cap, more Filipinos can now avail of the benefits that are provided in this law.
The Small and Medium Development Council, renamed as the Micro, Small and Medium Enterprises Development (MSMED) Council, was strengthened to effectively spur the growth and development of MSMEs in the country. Included in the Council are three representatives from the MSME sector to represent Luzon, Visayas, and Mindanao.
The amended magna carta would also rename the Small Business Guarantee and Finance Corporation as the Small Business Corporation, with its authorized capital stock increased to P10 billion. It shall guarantee all loans obtained by qualified MSMEs.
Loren also said that the amendments will enable MSMEs to grow while still being eligible for government assistance by permitting them to accept subcontracts or enter into franchise agreements with large enterprises or to join cooperative activities with other MSMEs.